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AMD plans plant in Brazil

But it's for testing, not fabbing

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Updated AMD will build its next chip fab in Brazil, where the nuts come from.

That, at least, is what local paper Valor Economico has claimed. Its report, relayed by Bloomberg, says that AMD executives have held negotiations with the Brazilian government to discuss what kind of tax breaks and other incentives the company will get for setting up shop in the country.

Valor Economico said the venture will be backed by an "unnamed" Brazilian group, but it noted that representatives from banking conglomerate Itau Group accompanied AMD staffers - including its heir apparent, CEO-in-waiting Hector Ruiz - when they met with the Brazilian development minister recently.

The paper also claimed the fab is likely to be sited in southern Brazil, one of its chief industrial zones, and the site of Dell's Brazilian factory.

Update

AMD quickly denied the story's claim. While Ruiz and co. have been talking to the Brazilian government, they were discussing the possible construction of a testing facility, not a fab.

"Right now, our current focus in the Latin American region is how we can address the testing and distribution of our products," said Ruiz in a statement. "At this stage of the discussions we are studying and have not committed to anything yet." ®

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